DOWNSTATE SMALL BUSINESS STABILIZATION PROGRAM …...A Certificate of Good Standing from the Illinois Secretary of State and the Illinois Department of Revenue must accompany the application

PRE APPLICATION GUIDE 2020 Downstate Small Business Stabilization Program

DOWNSTATE SMALL BUSINESS STABILIZATION PROGRAM Pre-Application Guide & Checklist

Please return completed Pre-Application and required attachments to Coles Together at [email protected]; the Charleston Chamber of Commerce at [email protected]; or the Mattoon Chamber of Commerce at [email protected]

The Economic Development Downstate Small Business Stabilization program has been established to provide working capital funds to businesses economically impacted by the COVID-19 virus. The program component makes funds available for 60 days of verifiable working capital up to a grant ceiling of $25,000 and is available for businesses that employ 50 people or less. Number of employees includes the business owner(s).

Funds may be used to assist private for-profit small retail and service businesses, or businesses considered non-essential by the Governor’s Executive Order without the ability for employees to work remotely.

Applicants that can demonstrate an “Urgent Need” in relation to the COVID-19 emergency will be funded. Projects should have solid commitments to retain permanent jobs. While all businesses with losses related to COVID-19 are encouraged to apply, certain qualifying criteria must be met and there is no guarantee funding will be awarded.

CDBG grant funds are granted by the State of Illinois to communities to be provided as financial assistance to a private for-profit entity. Funding is not made directly to a business by the State of Illinois.

ELIGIBLE ACTIVITIES

The business may use funds for working capital expenses (employee salaries, general operating expenses, inventory and advertising/marketing expenses). Costs incurred prior to the date of grant award are not reimbursable.

REQUIRED DOCUMENTATION

1. Company name, address, owner(s) name, owner(s) address, phone, email (form attached)

2. Company FEIN

3. Company DUNS -apply at this link if you do not already have one: https://fedgov.dnb.com/webform/

4. Company SIC –can be found here https://www.osha.gov/pls/imis/sic_manual.html

mailto:[email protected]



https://fedgov.dnb.com/webform/

https://www.osha.gov/pls/imis/sic_manual.html

PRE APPLICATION GUIDE 2020 Downstate Small Business Stabilization Program

5. A brief project narrative which includes details about the company, e.g., type of firm, its product or service, and how long they have been in business. Describe how CDBG funds will be used and reasons why funding is needed to retain jobs. Specific needs must be identified. Explain what circumstances make the funding necessary to maintain adequate permanent working capital to sustain operating needs. Please discuss losses already suffered and losses anticipated in the future directly related to the COVID-19 virus. You may want to discuss the inability of the company to maintain sufficient funding to sustain normal operating working capital needs by providing detail about how the funding will fill that gap. (Form attached)

6. Please confirm in your narrative that your business does not earn more than 33% of its gross revenue from gaming. Businesses that do are ineligible to apply.

7. Please describe in your narrative if the firm, its officers or principal have ever been involved in bankruptcy or insolvency procedures.

8. Please describe in your narrative any lawsuits in which the business, its officers or principals may have been involved.

9. A Certificate of Good Standing from the Illinois Secretary of State and the Illinois Department of Revenue must accompany the application.

10. The business must provide evidence of net income for the last three fiscal years ending December 31, 2019. Net income can be obtained from the Profit and Loss statement, generally the last item on that statement. (Please provide copies of these statements and use them to complete attached form.) In the event Profit and Loss statements cannot be found, net income can be derived from total sales minus total expenses. The business must provide its cash balances. This will be either the first line item on the balance sheet or bank statements as of the last day of each fiscal year. Three years of ending cash balances must be provided.

11. A copy of the most current bank statement for the business.

12. Any other forms of documentation to demonstrate the lack of permanent working capital in support of operating expenses. Such evidence may include shutoff utility notices, delinquent bills, denied loan applications, etc.

13. A Participation Agreement between the unit of local government and the business that will receive funding (attached).

14. Net Income Verification Form (attached).

15. Employment Documentation Form which lists all employees as of January 1, 2020, employees hired since January 1, 2020 and their current status (attached).

16. Certificate of Good Standing from the Illinois Secretary of State.

17. Business Certifications Form (attached).

2020 Downstate Small Business Stabilization Program

Project Information and Summary

Provide the narrative requested in items 5, 6, 7, and 8 below. Again, this should include a brief description of the company, the type of firm, its product or service, and how long the company has been in business. Describe how the CDBG funds will be used and reasons why they are needed for the company to be in a position to retain jobs. Specific needs should be identified. Explain how the COVID-19 pandemic and/or stay-at-home executive order make this funding necessary to maintain adequate permanent working capital.

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NET INCOME VERIFICATION

The business must complete the white boxes below and identify net income for the last three fiscal years ending December 31, 2019. Net income can be obtained from the Profit and Loss statement, generally the last item on that statement. In the event that the Profit and Loss statements cannot be found, net income can be derived from total sales minus total expenses. In addition, cash balances must be provided. This will be either the first line item on the balance sheet or bank statements as of the last day of each fiscal year. Three years of ending cash balances must be provided for each fiscal year.

Fiscal Year Ending: Net Income Net Income derived from Profit/Loss Statement? (Yes/No)

Net Income calculated from total sales – total expenses? (Yes/No)

Cash Balance

December 31, 2017

December 31, 2018

December 31,2019

Current:

JANUARY, 2020 MONTHLY BUDGET

Provide the appropriate information below reflecting your business’s monthly budget for January, 2020.

Budget Item Total Monthly Expenditures Monthly Net Income Computation

Total Income

Personnel (Salary & Wages)

Fringe Benefits

Equipment

Inventory

Supplies

Occupancy (Rent & Utilities)

Telecommunications

Other (Specify)

Other (Specify)

Other (Specify)

Total of All Expenditures

Monthly Net Income (Total Income – Total of All Expenditures)


DOCUMENTATION of EMPLOYEE STATUS (Expand as Needed)

Provide a list of all personnel that were employed as of December 31, 2019 as well as new hires since that

date. Indicate the current status of each employee. Provide the total of employees on 12/31/19

Employee Name Employee’s Last 4

Digits of Social

Security #

Status on 12/31/19 Current Status

Employed Hired after

12/31/19

Employed working at business location

Employed working remotely

Temporarily Laid Off

Terminated

TOTAL:


BUSINESS CERTIFICATIONS

The Business understands that no aspect of the project proposed for assistance will commence

prior to the award of funds to the community and the receipt of environmental clearance.

The Business certifies that it is a Business in good standing, authorized to do business in Illinois and

has no delinquent tax liabilities. The Business further authorizes the Department of Commerce and

Economic Opportunity to seek a tax clearance letter from the Illinois Department of Revenue and

authorizes the Department of Revenue to provide such a letter stating whether the records of the

Department show that Borrower is in compliance with all tax acts administered by the Department of

Revenue and to which Borrower is subject.

The Business also certifies that no tax liens, including but not limited to, municipal, county, state, or

federal, have been filed against the Business, any partners of the Business, the majority shareholder of

the Business, or in the name of a related business owned by the recipient.

The Business authorizes the Department of Commerce and Economic Opportunity to verify in any

manner deemed appropriate any and all items indicated in this application which includes information

obtained through the Illinois Department of Employment Security, Consumer Credit Bureau Services,

business reporting services such as Dun and Bradstreet and criminal history record check.

The Business certifies that all information and documentation contained in this application, is

accurate, complete and true to the best of his/her knowledge.

The Business certifies that it has read and understands the application guidelines.

__________________________________________ ____________________________

Signature of Chief Executive Officer Date

________________________________________ ____________________________

Typed Name of Chief Executive Officer Phone

________________________________________ ____________________________

Name of Company FEIN #

________________________________________ _____________________________

Company Address DUNS #

_______________________________________ ___________________________

Email address SIC #


PARTICIPATION AGREEMENT

THIS AGREEMENT is made as of the ____ day of ________, 2020 by and between the City

of ____________ ("Unit of Local Government") and ______________________, Inc., (Benefiting

“Business").

WHEREAS, the Unit of Local Government is interested in maintaining its economic base with

the primary emphasis on retaining jobs.

WHEREAS, the Unit of Local Government has entered into an agreement with the Illinois

Department of Commerce and Economic Opportunity to implement an economic development

program that significantly impacts upon the Unit of Local Government's economic base; and

WHEREAS, the Business is interested in maintaining its employment base; and

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties

agree as follows:

I. GENERAL DEFINITIONS

1.1 "Application" shall mean all materials submitted by the Business to the Unit of Local

Government or the State of Illinois in connection with this Agreement.

1.2 "DCEO Funds" shall mean the sum of $_____________ representing the grant received

by the Unit of Local Government pursuant to its agreement with the Illinois Department

of Commerce and Economic Opportunity (DCEO).

II. PERFORMANCE

2.1 The Unit of Local Government agrees, subject to the terms and conditions of this

Agreement, to provide grant funds to the Business for the purpose of working capital.

2.2 Grant funds shall be paid with Community Development Block Grant funds through

DCEO.

2.3 Business must remain open or reopen and retain or re-employ permanent jobs prior to

the grant end date (one year from grant award).

2.4 In the event the Unit of Local Government fails to receive the DCEO funds, for any

reason, this Agreement shall be terminated, at the sole option of the Unit of Local

Government, without fault as to either party.

III. COVENANTS, REPRESENTATIONS AND WARRANTIES OF THE BUSINESS

3.1 On or prior to the date of this Agreement, all legal matters incident to this Agreement

and the transactions contemplated hereby shall be satisfactory to the Unit of Local

Government.


3.2 Business represents and warrants that:

(a) Business is a sole proprietorship, corporation or partnership, as the case may be,

duly formed, validly existing and in good standing under the laws of Illinois, is duly

licensed and duly qualified as a foreign corporation or partnership, as the case may be,

in good standing in all the jurisdictions in which the character of the property owned or

leased or the nature of the business conducted by it requires such licensing or

qualification and has all proprietorship, corporate or partnership powers, as the case may

be, and all material governmental licenses, authorizations, consents and approvals

required to carry on its business as now conducted.

(b) The execution, delivery and performance by Business of this Agreement, are

within Business's proprietorship, corporate or partnership powers, have been duly

authorized by all necessary proprietorship, corporate or partnership action, require no

action by or in respect of, or filing with, any governmental body, agency or official and

do not contravene any provision of applicable law or regulation or of the Articles of

Incorporation or By-Laws or Partnership Agreement of Business, as the case may be.

(c) This Agreement constitutes a valid and binding agreement of Business.

(d) The Application is in all respects true and accurate and there are no omissions or

other facts or circumstances which may be material to this Agreement or the Project.

(e) The financial information delivered to Unit of Local Government pursuant to the

Application fully and accurately presents the financial condition of the Business. No

material adverse change in the condition, financial or otherwise, of Business has

occurred since the date of the financial statements most recently delivered to the Unit of

Local Government.

(f) Neither Business nor, to the best of Business's knowledge, any of Business's

employees have been convicted of bribing or attempting to bribe an officer or employee

of the Unit of Local Government, nor has the Business made an admission of guilt of

such conduct which is a matter of record.

3.3 The Business shall keep detailed records of all matters related to this Agreement

(including the Exhibits hereto). The Business shall provide to the Unit of Local

Government all materials necessary for the Unit of Local Government to meet reporting

and other requirements of this grant.

3.4 The Business shall comply with all applicable state and federal law and regulations

promulgated thereunder. Business shall comply with all applicable laws and regulations

prohibiting discrimination on the basis of race, sex, religion, national origin, age or

handicap, including but not limited to the Illinois Human Rights Act, as now or

hereafter amended, and the Equal Employment Opportunity Clause promulgated

pursuant thereto.

3.5 Business shall fully and completely indemnify, defend and hold harmless the Unit of

Local Government and the State of Illinois and their officers, directors, employees and


agents against any liability, judgment, loss, cost, claim, damage (including

consequential damage) or expense (including attorney's fees and disbursements,

settlement costs, consultant fees, investigation and laboratory fees) to which any of

them may become subject insofar as they may arise out of or are based upon this

Agreement or any agreement or document executed by Business and Unit of Local

Government as part of the transaction described herein.

3.6 The Unit of Local Government shall have the right of access, at all reasonable hours, to

Business's premises and books and records for purpose of determining compliance with

this Agreement. In addition to the reporting specifically required hereunder, Business

shall furnish to the Unit of Local Government such information as the Unit of Local

Government may reasonably request with respect to this Agreement.

IV. DEFAULT AND REMEDIES

4.1 If one or more of the following events ("Defaults") occurs and is not timely cured, then,

the Unit of Local Government may declare Business in default under this Agreement

and seek any of the enumerated remedies described in this Section.

(a) Business fails to observe or perform any covenant or agreement contained in this

Agreement, including the Exhibits hereto, for 10 days after written notice to cure thereof

has been given to Business by the Unit of Local Government;

(b) Any representation, warranty, certificate or statement made by Business in this

Agreement, including the Exhibits hereto, or in any certificate, report, financial

statement or other document delivered pursuant to this Agreement shall prove to have

been incorrect when made in any material respect;

(c) Business shall commence a voluntary case or other proceeding seeking liquidation,

reorganization or other relief with respect to itself or its debts under any bankruptcy,

insolvency or other similar law now or hereafter in effect or seeking the appointment of

a trustee, receiver, liquidator, custodian or other similar official of it or any substantial

part of its property, or shall consent to any such relief or to the appointment of or taking

possession by any such official in an involuntary case or other proceeding commenced

against it, or shall make a general assignment for the benefit of creditors, or shall fail

generally to pay its debts as they become due, or shall take any corporate action to

authorize any of the foregoing;

(d) An involuntary case or other proceeding shall be commenced against Business

seeking liquidation, reorganization or other relief with respect to it or its debts under any

bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the

appointment of a trustee, receiver, liquidator, custodian or other similar official of it or

any substantial part of its property, and such involuntary case or other proceedings shall

remain undismissed and unstayed for a period of 60 days; or an order for relief shall be

entered against Business under the federal bankruptcy laws as now or hereafter in effect;


(e) Business ceases the conduct of active trade or business in the Unit of Local

Government's community for any reason, including, but not limited to, fire or other

casualty; and does not reopen prior to the end date of the grant agreement.

4.2 If a Default occurs and is not timely cured, then the Unit of Local Government shall seek

reimbursement from the Business for all funds (including DCEO funds) expended by the

Unit of Local Government on or related to the Project, including, but not limited to

working capital, equipment, architectural engineering, construction, administrative, real

estate and incidental costs related thereto.

4.3 Upon notice of a Default and if said Default is not timely cured, the Unit of Local

Government shall notify the Business that reimbursement shall be made to the Unit of

Local Government within 30 days after said notice. If the Business fails to reimburse

the Unit of Local Government within 30 days after the date of the notice, the Unit of

Local Government shall have the right to collect interest on the unpaid balance

beginning on the 31st day after notice at a rate equal to 12% per annum.

4.4 If the Unit of Local Government is successful in any proceeding to enforce the terms of

this Agreement, then the Unit of Local Government shall have the right to obtain from

the Business, as an additional remedy, attorney fees, costs and expenses, related to the

proceeding.

V. TERMINATION

5.1 This Agreement may be terminated at any time by written, mutual agreement of the

parties, provided the Unit of Local Government has obtained written consent from the

Illinois Department of Commerce and Economic Opportunity as to such termination.

5.2 This Agreement may be terminated by the Unit of Local Government whenever it issues

a notice of Default to the Business and the Business does not timely cure the Default

pursuant to Section IV.

5.3 This Agreement will terminate when the Project has been completed and when all of the

terms and conditions of this Agreement (including the Exhibits thereto) creating duties

upon the Business, have been satisfied by the Business.

VI. GENERAL PROVISIONS

6.1 Notice required hereunder shall be in writing and shall be deemed to have validly served,

given or delivered upon deposit in the United States mail, by registered mail, return

receipt requested, at the address set forth on the signature page hereof or to such other

address as each party may specify for itself by like notice.

6.2 All covenants, agreements, representations and warranties made herein and, in the

certificates, delivered pursuant hereto shall survive the execution of the Agreement and

shall continue in full force and effect so long as the Agreement shall be in force.


6.3 No failure or delay by the Unit of Local Government in exercising any right, power or

privilege hereunder shall operate as a waiver thereof nor shall any single or partial

exercise thereof preclude any other or further exercise thereof or the exercise of any

other right, power or privilege. The rights and remedies herein provided shall be

cumulative and not exclusive of any rights or remedies provided by law.

6.4 Wherever possible each provision of this Agreement shall be interpreted in such manner

as to be effective and valid under applicable law, but if any provision shall be invalid

under applicable law, such provision shall be ineffective to the extent of such invalidity

without invalidating the remaining provisions of this Agreement.

6.5 This Agreement represents the full and complete agreement between the parties with

respect to the matters addressed herein and there are no oral agreements or

understandings between the parties.

6.6 This Agreement shall be construed in accordance with and governed by the law of the

State of Illinois.

6.7 This Agreement may be signed in any number of counterparts, each of which shall be an

original, with the same effect as if the signatures thereto and hereto were upon the same

instrument.

6.8 No modification of or waiver of any provision of this Agreement shall be effective

unless the same shall be in writing and signed by the parties hereto, and provided further,

that the Unit of Local Government shall obtain written consent of the Illinois

Department of Commerce and Economic Opportunity prior to executing any such

modification or waiver.

6.9 The Business certifies that it has not been barred from bidding on or receiving State

contracts as a result of a violation of Section 33E-3 or 33E-4 of the Criminal Code of

1961 (bid rigging or bid rotating, respectively) (720 ILCS 5/33E-3 and 5/33-4).

6.10 The Business certifies that it has not been barred from being awarded a contract or

subcontract under Section 50-5 of the Illinois Procurement (Code 30 ILCS 500).

6.11 The Business acknowledges that receipt of benefits under this agreement may require

compliance with the Prevailing Wage Act (820 ILCS 130). Persons willfully failing to

comply with or violating this act may be in violation of the Criminal Code. Questions

concerning compliance with the Prevailing Wage Act should be directed to the Illinois

Department of Labor.

6.12 The Unit of Local Government acknowledges that if the project as proposed by this

Agreement is completed in accordance with this Agreement and the Agreement executed

between the Unit of Local Government and the Department of Commerce and Economic

Opportunity then the provisions cited above in 6.9; 6.10; and 6.11 do not apply to the

Business but do apply to the activities to be completed by the Unit of Local Government.


IN WITNESS WHEREOF, the parties executed this Agreement the day and year first above

written. _________________________

(Business Name)

By: (Name of Officer)

Its: President

By: Honorable (Name of Mayor)

Its: Mayor

Address: Address:

Documents

DOWNSTATE SMALL BUSINESS STABILIZATION PROGRAM …...A Certificate of Good Standing from the Illinois Secretary of State and the Illinois Department of Revenue must accompany the application